Three certainties Flashcards
What are the three certainties?
- certainty of intention
- certainty of subject matter
- certainty of objects
What is the requisite intention for certainty of intention?
intention to assume/impose a duty which is a characteristic of a trust
How can an intention to create an express trust be shown?
By words or conduct
What approach do courts use when ascertaining an intention to create an express trust?
Objective
What can be a good indicator (but not conclusive) of an intention to create a trust?
- use of word trust
- segregation of funds
What element is likely to show no intention to create a trust?
Vagueness
What are the two requirements for certainty of subject matter?
- Trust property requirement
- Beneficial entitlement requirement
When may it be difficult to identify trust property?
- identified by description
- identified out of a larger mass
Is there certainty of subject matter where the trust property is a fractional interest?
Yes
Is there certainty of subject matter where the trust property is a a specific number of items out of larger mass?
Yes if which ones are identified
When can a trust not be formed where the property is identified as a specified amount of a larger bulk?
Tangible assets
When can a trust be formed where the property is identified as a specified amount of a larger bulk?
Intangible, fungible assets
Is ‘reasonable income’ sufficient to show beneficial entitlement?
Yes
When may there be no certainty of beneficial entitlement?
Where there is a decider - they may die/become unable to choose
Which type of trust needs the most certainty of objects?
Fixed trusts